Question: I keep getting the wrong number. Help me solve A and B. P 8-8 (similar to) Question Help Your factory has been offered a contract
I keep getting the wrong number. Help me solve A and B.
P 8-8 (similar to) Question Help Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5,07 million per year. Your upfront setup costs to be ready to produce the pat would be $7.89 mill on Your discount rale or this contract 78% a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is S 5223177.70 million. (Round to two decimal places.)
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